Gasoline Climbs to 3-Week High

US gasoline futures traded above $3.20 per gallon, reaching a three-week high as Middle East peace talks stalled. Iran warned of further escalation if the US fails to fully implement an interim deal, while the US threatened military action against Oman and demanded Iran’s surrender. At the pump, the average US gasoline price reached $4.06 per gallon, more than $1 above its level a year earlier. Elsewhere, repeated Ukrainian strikes on Russian oil refineries triggered a fresh wave of fuel shortages, while Moscow extended its fuel export restrictions. However, continued crude shipments through the Persian Gulf waterway despite the conflict eased some supply concerns. US Energy Secretary Chris Wright stated he would work with refiners to boost fuel production and ease prices, stating refiners are operating at record high. Meanwhile, Russia received at least one gasoline shipment from India, seeking to alleviate domestic shortages.

US gasoline futures held around $3.18 per gallon, near a more than two-week high, as crude shipments through the Strait of Hormuz slowed while US-Iran negotiations stalled. Prospects for a peace deal remain limited after President Trump signaled plans to increase economic pressure on Tehran, while Treasury Secretary Scott Bessent said new sanctions could be announced this week. Meanwhile, more vessels came under attack in the key waterway late last week, including ships linked to Abu Dhabi National Oil Co. Despite the disruptions, Middle Eastern producers continue to transport substantial volumes of crude through the Persian Gulf. Elsewhere, repeated Ukrainian strikes on Russian oil refineries have disrupted fuel supplies, prompting gasoline rationing in at least two regions and restrictions on refined-product exports. Russia has since extended its existing diesel export ban until January 2027, maintaining restrictions on global middle-distillate supplies.

US gasoline futures traded above $3.10 per gallon, remaining near a two-week high as markets assessed the prospects of a potential deal over the Strait of Hormuz. Following President Trumps statement that the US had "total control" over the strategic waterway, Tehran stated the Strait of Hormuz was "under Iran's control and management", adding to uncertainty over the situation. Meanwhile, EIA data showed US crude inventories recorded their largest weekly increase since early 2023. However, gasoline stocks fell by 1 million barrels in the week ended August 7th, below expectations, leaving inventories 6% below the five-year seasonal average. Elsewhere, intensifying Russia-Ukraine attacks heightened concerns over prolonged energy disruptions, after Ukraine targeted major Russian refineries. Russia’s overseas crude shipments fell to their lowest since May, while Moscow extended its gasoline export ban through January 2027.